Possibly, I don't know the exact back office mechanics for forex. It's one or the other. At some point, either the broker, or the LP, has to provide the leverage...?
Leverage, I dont understand the principle of it...
- Thread starter capitalistsmith
- Start date
he's not even trading yet, and I would rather a trader persists in asking a question no matter how many smart alec replies he gets from posters who can't even understand the question let alone know the answer.
he wasn't asking why do brokers offer margin
he was asking "Where does it come from?
I have been trading a long time and still don't fully understand the answer to that question, so the question is a good one.
at anyrate opie, margin is not just spe3cdific to forex, it's involved in a lot of other trading also.
If you go the CME website they will swear up and down that margin is not a loan, but that's exactly what it is. They call it a performance bond, so the whole thing is run on money created out of thin air. I give the broker my word that even though I only have 1k, I'm good for 50k, and he gives his word to the fcm that I am good for it, and the fcm gives his word to the bank. Nobody ever actually has to come up with the real money, they just all need to agree that everybody is good for it.
do a search on "Margin" broaden your horizon beyond forex, because if you search forex anything all you are going to get are several pages of sales pitches from forex brokers, and when that ends it goes into "how to make money in forex?
But you ask a good question, maybe some one with more knowledge than me can give us both a more clear understanding.
You former ET handle was Veyron 16.4. Your first name is "Hosea" and your wife's name is "Mercedes". You live in Antioch California in Section 8 housing and are a bankrupt retail FX trader. Your wife is a cleaning woman who works 60 hours a week so you can sit on your ass and fleece newbs on the internet.
You also go by various other aliases such as "7thsignaltrader" on T2W and other forums. 7thsignaltrader is also mentioned in your youtube videos.
You traded a small account for a guy on the forums and you blew out the account in a few weeks. 90% loss with no uptick. Blamed it on FXCM.... yet you continued to trade your micro-account with them.
You no longer trade retail because you're flat-out busted.
Would you like me to continue?
....
it should be mandataroy traders take a crash course in money management before attempting to trade. Risk more than 5% per trade and you will blow out! Yet with forex....all that goes out of the window
I've seen so many clowns on the Net saying trading on 100:1+ leverage gives no problems......it never stops!
I've seen so many clowns on the Net saying trading on 100:1+ leverage gives no problems......it never stops!
Is this true?
f*** SAKE! This it he kind of B*S* that ruins the Net. Complete f888 idiots are allwoed to pretend they are real bizz people.
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You former ET handle was Veyron 16.4. Your first name is "Hosea" and your wife's name is "Mercedes". You live in Antioch California in Section 8 housing and are a bankrupt retail FX trader. Your wife is a cleaning woman who works 60 hours a week so you can sit on your ass and fleece newbs on the internet.
You also go by various other aliases such as "7thsignaltrader" on T2W and other forums. 7thsignaltrader is also mentioned in your youtube videos.
You traded a small account for a guy on the forums and you blew out the account in a few weeks. 90% loss with no uptick. Blamed it on FXCM.... yet you continued to trade your micro-account with them.
You no longer trade retail because you're flat-out busted.
Would you like me to continue?
f*** SAKE! This it he kind of B*S* that ruins the Net. Complete f888 idiots are allwoed to pretend they are real bizz people.
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You former ET handle was Veyron 16.4. Your first name is "Hosea" and your wife's name is "Mercedes". You live in Antioch California in Section 8 housing and are a bankrupt retail FX trader. Your wife is a cleaning woman who works 60 hours a week so you can sit on your ass and fleece newbs on the internet.
You also go by various other aliases such as "7thsignaltrader" on T2W and other forums. 7thsignaltrader is also mentioned in your youtube videos.
You traded a small account for a guy on the forums and you blew out the account in a few weeks. 90% loss with no uptick. Blamed it on FXCM.... yet you continued to trade your micro-account with them.
You no longer trade retail because you're flat-out busted.
Would you like me to continue?
Of course it is. I wouldn't hold myself up for libel by making it up. TradeVector, Veyron 16.4, 7thsignaltrader, among others. The guy he blew-up sent me a PM last year with his life-history, including the $1k tax lien (and others) from the IRS. Yup, $1k.
He suckered a few guys from T2W and an FX site to allow him to manage accounts. Money was gone in weeks. He blamed it solely on FXCM games yet continued to defend them and trade his micro-account at FXCM until he blew that out.
ET search on "vcapfx" "retail hell"
I was the one who corrected you in the thread in which you were gloating about a few K win, when it was shown you had taken said demo account to an 80% draw-down. I told you that DBFX was operating under the FXCM white label. A year later you opened a thread about your discovery, Columbus, but you were a year late.
http://www.elitetrader.com/vb/showthread.php?s=&postid=2549505&highlight=old+slip#post2549505
Quote from Tango 6 Alpha:
Sure, its true. If you live in the delusional make believe town of Atticus and work for FXCM.
Can you spell: Civil Liability.
Or, worse - pretending to know something they can't possibly know, while getting their employer soaked in a law suit that kills their business.
Not so smart after all.
Garbage In - Garbage Out. I love that phrase.
You make another f*cking implicit/explicit statement that I am lying and I put it all on this thread.